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The Value of Scattered Greenery in Urban Areas: A Hedonic Analysis in Japan

Author

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  • Yuta Kuroda

    (Osaka Metropolitan University)

  • Takeru Sugasawa

    (Housing Research and Advancement Foundation of Japan)

Abstract

This study investigates the impact of scattered greenery (street trees and yard bushes), rather than cohesive greenery (parks and forests), on housing prices. We identify urban green space from high-resolution satellite images and combine these data with data on both condominium sales and rentals to estimate hedonic pricing models. We find that scattered urban greenery within 100 m significantly increases housing prices, while more distant scattered greenery does not. Scattered greenery is highly valued near highways, and the prices of inexpensive and small for-sale and for-rent properties are less affected by scattered greenery. These results indicate that there is significant heterogeneity in urban greenery preferences by property characteristics and location. This heterogeneity in preferences for greenery could lead to environmental gentrification since the number of more expensive properties increases in areas with more green amenities.

Suggested Citation

  • Yuta Kuroda & Takeru Sugasawa, 2023. "The Value of Scattered Greenery in Urban Areas: A Hedonic Analysis in Japan," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(2), pages 523-586, June.
    • Handle: RePEc:kap:enreec:v:85:y:2023:i:2:d:10.1007_s10640-023-00775-5
    DOI: 10.1007/s10640-023-00775-5
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    Cited by:

    1. Takeru Sugasawa & Yuta Kuroda & Kai Nomura & Shohei Yasuda & Jun Yoshida, 2024. "The impact of flight noise on urban housing markets: Evidence from the new landing flight paths of Haneda Airport in Japan," DSSR Discussion Papers 144, Graduate School of Economics and Management, Tohoku University.
    2. Liu, Lu & Meng, Lina & Zhang, Ruige, 2024. "Does Easy Accessibility to Urban Parks Always Raise Home Values?," Journal of Housing Economics, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    Environmental amenities; Urban greenness; Hedonic housing price model; Housing value; Remote sensing;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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